Power ministry ordered imported coal-based power plants to operate at full capacity for three months beginning March 16. The ministry announced in a statement that the peak in power demand is anticipated to be around 229 GW in April.
The notification stated that "the generation from ICB [imported coal-based] plants needs to be enhanced to ensure the supply of power to satisfy the expected demand." All ICB power plants must run at full capacity and provide power. According to Section 11 of the Electricity Act, the
government has the right to request that a generating business operate and maintain a station in line with its instructions when there are exceptional circumstances. In May 2022, when local coal was unable to satisfy the sudden spike in demand due to an increase in electricity consumption, the clause was activated. According to a government official, the notification was removed at the end of December, which reduced the amount of power generated using imported coal and raised the need for domestic supply. RK Singh, the minister of power, had stated in January that the government may, in some circumstances, use section 11 of the Electricity Act.
A committee will determine the benchmark rates if the current power purchase agreements of imported coal-based plants do not have sufficient clauses to carry down the cost rise caused by higher international fuel costs. Such units will be permitted to sell any excess power that remains after fulfilling the power purchase agreement requirement or any power for which there is no agreement on the power exchanges.
India's demand for power increased significantly in the current fiscal year to 215 GW. The power ministry estimated that 193 GW of energy from thermal generating units would be needed to meet the increased expected peak demand in April.
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